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Bitcoin [BTC] and cryptocurrencies are the biggest bubbles, scams in history, says Nouriel Roubini

Febin Jose

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Bitcoin [BTC] and cryptocurrencies are the biggest bubbles, scams in history, says Nouriel Roubini
Source: Pixabay

An unceasing critic of Bitcoin [BTC] and other cryptocurrencies, Nouriel Roubini, alleged that cryptocurrencies are the “mother of all scams”, in a recent statement.

In a testimony for the hearing of the US Senate Committee on Banking, Housing and Community Affairs On Exploring the Cryptocurrency and Blockchain Ecosystem, he also said that blockchain was the most “over-hyped technology ever”.

He compared blockchain to a normal spreadsheet and database and said that it was only as effective as them, irrespective of whatever technology it was using.

The financial market expert, popularly known as Mr. Doom for his perpetual bearishness, said that we were in a post-apocalypse world following the cryptocurrency bubble burst a year ago.

He blames the wrong attention for the “maniacal frenzy” for buying Bitcoins and said that it was a breeding ground for illegal activities. He states in his testimony:

“Scammers, swindlers, criminals, charlatans, insider whales and carnival barkers (all conflicted insiders) tapped into clueless retail investors’ FOMO (“fear of missing out”), and took them for a ride selling them and dumping on them scam(my) crappy assets at the peak that then went into a bust and crash – in a matter of months – like you have not seen in any history of financial bubbles.”

Mr. Doom then goes on a wild goose chase mentioning the drop in prices of all cryptocurrencies. He quotes a study that had revealed that “81% of all ICOs were scams in the first place, 11% of them are dead or failing while only 8% of them are traded in exchanges” and calls the current state a true Crypt-Apocalypse.

For a currency to be valid, he says, they need to be a means of payment, should be a serviceable unit of account and a stable store of value. As the markets are volatile, he argues that Bitcoin can never be a currency. Investors and consumers would rather trade BTC to make a profit than use it as a day-to-day currency. He says:

“As is typical of a financial bubble, investors were buying cryptocurrencies not to use in transactions, but because they expected them to increase in value… It is so energy-intensive (and thus environmentally toxic) to produce, and carries such high transaction costs, that even Bitcoin conferences do not accept it as a valid form of payment.”

His testimony then goes on to explain why Bitcoin was deflationary. As they don’t have any intrinsic value and does not track a potential nominal GDP, they will undergo deflation sooner or later.





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Febin Jose is a full-time journalist/editor at AMBCrypto. He believes that cryptocurrencies will navigate a volatile future and that Arsenal can still win a title. Lives around the "if it sounds like writing, I rewrite it" mantra.

Bitcoin

Bitcoin continues to scale new heights after Wasabi Wallet records first ever 100-person CoinJoin

Priya

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Bitcoin [BTC] rises in the market as cryptocurrency continues to mark new milestones
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Bitcoin [BTC], the largest cryptocurrency in the market, has successfully breached the $9000 mark, boosting the market sentiment. Notably, the digital currency was not the only coin to rise in the market as other coins such as Ethereum [ETH] also registered a significant rise in the market.

According to CoinMarketCap, at press time, Bitcoin was trading at $9181, with a market cap of $163.101 billion. The 24 hour trading volume of the cryptocurrency was recorded to be nearly $22.778 billion, with the coin recording a significant rise of over 17 percent in the past week.

Keeping the price surge aside, the coin has constantly been in the headlines with news pertaining to its development and new milestones. The coin was placed in the limelight of the cryptocurrency space after report by researchers at the Technical University of Munich [TUM]  claimed that Bitcoin’s carbon footprint was between 22 and 22.9 megatonnes/year, almost the same as that of Vienna or Las Vegas.

Further, the coin recently marked a new milestone after Bitcoin surpassed a million daily active addresses, with the last record on the same dating back to November 2017. Weiss Ratings heralded the same, tweeting,

“Bitcoin passed an interesting milestone – there are now over a million daily active addresses – an important metric that shows actual, unique transfers separate from the various direct transfers to and from bigger exchanges.”

Additionally, the coin was in the news again after Wasabi Wallet, an open-source non-custodial Bitcoin wallet, completed the first ever 100 participants CoinJoin, the largest CoinJoin transaction in terms of participants. Aviv Milner reported the same on Twitter,

“Huge Congratulations – @wasabiwallet just did the first ever 100 person CoinJoin, likely the largest in Bitcoin History. (link) A monumental achievement in Bitcoin privacy. Credit to the team @lontivero @molnardavid84 @nopara73 @dwuk86 @NicolasDorier and others!”

Days after this achievement, a Redditor highlighted that the largest CoinJoin transactions, in terms of inputs, was completed on June 17, 2019, with a total of 125 inputs. Golden Wiki describes CoinJoin as,

“A digital currency platform that enables multiple users to combine all inputs and outputs from different transactions into a single transaction. Privacy is achieved in a way that when a transaction is broadcast, it will not be possible to determine which Bitcoins went where.”





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